Amortization Calculator
Calculate your loan amortization schedule and see how each payment is split between principal and interest over time.
Amortization
What is Amortization?
Amortization is the process of paying off a loan through regular payments over time. Each payment covers both interest and principal, with more going toward principal as the loan matures.
Cost Breakdown
Payment Schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $2k | $13k | $198k |
| 2 | $2k | $13k | $195k |
| 3 | $3k | $13k | $193k |
| 4 | $3k | $12k | $190k |
| 5 | $3k | $12k | $187k |
| 6 | $3k | $12k | $184k |
| 7 | $3k | $12k | $181k |
| 8 | $4k | $12k | $177k |
| 9 | $4k | $11k | $174k |
| 10 | $4k | $11k | $170k |
| 11 | $4k | $11k | $165k |
| 12 | $5k | $11k | $161k |
| 13 | $5k | $10k | $156k |
| 14 | $5k | $10k | $151k |
| 15 | $6k | $10k | $145k |
| 16 | $6k | $9k | $139k |
| 17 | $6k | $9k | $133k |
| 18 | $7k | $8k | $126k |
| 19 | $7k | $8k | $119k |
| 20 | $8k | $8k | $111k |
| 21 | $8k | $7k | $103k |
| 22 | $9k | $6k | $94k |
| 23 | $9k | $6k | $85k |
| 24 | $10k | $5k | $75k |
| 25 | $11k | $5k | $65k |
| 26 | $11k | $4k | $53k |
| 27 | $12k | $3k | $41k |
| 28 | $13k | $2k | $28k |
| 29 | $14k | $1k | $15k |
| 30 | $15k | $521 | $0 |
Understanding Your Schedule
- •Early payments go mostly to interest - this is normal!
- •Later payments pay down principal faster as balance decreases
- •Extra payments go entirely to principal and save substantial interest
- •Bi-weekly payments result in one extra monthly payment per year
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